Air Canada offers more seats to offset Lynx Air closure – Skies Mag

Air Canada will cap fares and add more than 6,000 seats in markets operated by Lynx Air, the company said in a statement on Feb. 23, a response to the ultra-low-cost airline’s announcement last week that it plans to suspend operations as of Feb. 26, 2024.

Calgary-based Lynx Air said it would cease operations at 12:01 a.m. Mountain Time on Feb. 26 due to pressures associated with inflation, fuel costs, exchange rates, cost of capital, regulatory costs and competitive tension in the Canadian market.

“Despite substantial growth in the business, ongoing operational improvements, cost reductions, and efforts to explore a sale or merger, the challenges facing the company’s business have become too significant to overcome,” the airline stated.

The company has been granted creditor protection in an Alberta court, the Globe…